Sometimes relationships matter more than the balance sheet. UFC CEO Dana White‘s recent meeting with President Donald Trump is a reminder of that.

The two have known each other for years, with the United States president often extending his support by attending marquee UFC events. What makes the latest meeting between Dana White and Trump unique, however, is that it comes amid multiple reports suggesting the UFC incurred a $30 million loss on the much-discussed Freedom 250, which took place on the South Lawn of the White House.

“Always a pleasure, my friend @realdonaldtrump,” the caption on White’s Instagram Story read.

The post featured him sitting beside the US president in what has been suggested to be inside “The Beast,” the heavily armored, custom-built Cadillac state limousine used by the president of the United States.

The meeting likely took place during the U.S. president’s recent visit to Las Vegas on Thursday, August 5. Speaking about his administration’s economic policies, Trump reportedly delivered a speech at Red Rock Casino.

Dana White appeared visibly pleased meeting his longtime friend, who has supported him since the UFC’s Zuffa era. At a time when many venues were reluctant to host the promotion, Trump opened the doors of Trump Taj Mahal, which staged UFC 30 and UFC 31 in 2001.

Yet, beneath that friendship lies a stark reality where most decisions in business are driven by profit and loss—mostly profits.

In this instance, the UFC had to absorb a significant financial hit. On June 14, the White House hosted the UFC Freedom 250 card to commemorate the two hundred and fiftieth anniversary of the United States as well as Trump’s 80th birthday.

The card had already attracted attention for a string of issues and controversies. Many felt the event, which coincided with the president’s eightieth birthday, had more to do with celebrating him than paying homage to the nation, which was poised to mark the occasion on July 4.

Still, despite criticism from within the promotion over the matchups featured on the card, as well as a lawsuit that sought to halt the event, Freedom 250 ultimately went ahead as planned.

The event itself may have been successful, but the real setback surfaced on the balance sheet.

Dana White’s bold White House play comes at a financial cost

Reports suggested the total production cost of staging reached nearly $60 million. Much of the expenses came from building a temporary outdoor arena from scratch on the South Lawn. The effort involved transporting massive specialized infrastructure, including a custom stage structure from Belgium, deploying extensive broadcasting equipment, and hosting an associated concert.

Unfortunately, against those expenses, the UFC recovered only $30 million.

To be fair, the blame does not lie with the promotion. From the outset, the White House card was intended to be a non-commercial event. Taking that requirement into consideration, there were no ticket sales that would otherwise have generated considerable gate revenue for the UFC at its regular events.

Considering that limitation, the UFC and parent company TKO Group Holdings had to accept a loss that has now drawn significant attention.

Beyond the gate, the event also fell short of viewership expectations. Given the partnership with Paramount, White predicted in the lead-up to the event that the show would generate viewership similar to that of the Super Bowl.

When figures were released, however, the White House spectacle generated slightly more than 8 million views across the United States and Latin America, with the worldwide viewership standing at approximately 34 million.

The setback, meanwhile, raises an obvious question: Why would the UFC commit to a non-commercial event when it likely knew the return on investments would be considerably low?

Part of the answer lies in comments made by Seth Zaslow, the head of TKO’s investor relations department. “In the days leading up to the UFC Freedom 250, we met with dozens of existing and new contacts in Washington D.C., a clear example of how our access and the attractiveness of our events can translate into opportunity,” he said.

The UFC’s sports diplomacy agreement with the U.S. Department of State, which involves using mixed martial arts as a tool for international cultural exchange and youth mentorship, further supports that argument.

Viewed through that lens, Dana White’s latest meeting with the president appears to be another step toward maintaining that relationship.

What is more significant here is that projections shared during TKO Group’s second-quarter earnings call reveal a healthy profit margin when compared to the previous quarter, with approximately $1.55 billion revenue and net income at $303.9 million.